The inventory turnover ratio is calculated by dividing cost of goods sold by
A)beginning inventory.
B)ending inventory.
C)average inventory.
D)365 days.

Name: The inventory turnover ratio is calculated by dividing cost of goods sold by A)beginning inventory. B)ending inventory. C)average inventory. D)365 days.
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Question

Quizplus · Accepted Answer

The inventory turnover ratio is calculated by dividing the cost of goods sold by the average inventory to measure how efficiently a company manages its inventory.

The Inventory Turnover Ratio Is Calculated by Dividing Cost of Goods